CURRENT LIABILITIES

6.1 Provisions

in EURk 31/03/2013 31/03/2012

Staff costs 346 518

Accounting and audit costs 340 436

Invoices outstanding 64 179

Legal and consulting fees 42 83

Supervisory Board compensation 32 39

Expert's valuation reports 27 39

Others 464 466

1,315 1,760

The Company assumes that provisions will be utilised in the following 2013/2014 fiscal year.

The provisions for staff costs include provisions for services from unconsumed vacations and gratuities, as well as a provision for outstanding salaries to a former Executive Board member.

The provisions for accounting and audit costs include the costs for the preparation, audit, and publica-tion of the financial statements and the consolidated financial statements.

The provisions for invoices outstanding are recognised for various costs. As at March 31, 2013, the primary portion of the provisions included follow-up costs related to a German residential property which has already been sold.

Other provisions primarily include a provision related to asset management services provided and a warranty provision for a German property which has already been sold.

in EURk 31/03/2012

Acquisi-tions

Utilisation Release Additions Disposals 31/03/2013

Staff costs 518 0 351 19 199 0 346

Accounting and audit

costs 436 9 374 33 309 8 340

Invoices outstanding 179 0 175 2 68 5 64

Legal and consulting

fees 83 0 50 0 10 0 42

Supervisory Board

compensation 39 0 14 0 8 0 32

Expert's valuation

reports 39 0 39 0 27 0 27

Others 466 66 117 30 80 1 464

1,760 75 1,121 84 700 14 1,315

Group management report Consolidated financial statements Notes to the consolidated

financial statements Notes to the consolidated

balance sheet Responsibility statement Audit opinion Financial calendar

112 DEMIRE Deutsche Mittelstand Real Estate AG Annual Report 2012 / 2013

6.2 Trade accounts payable and other liabilities

Trade accounts payable amounting to EUR 487k (EUR 752k) are entirely to third parties and are short-term in nature.

In the prior year, liabilities to administrators mainly consisted of fees payable to the property managers of rented properties. The liabilities were short-term in nature.

6.3 Tax liabilities

Current income tax liabilities in the amount of EUR 234k (previous year: EUR 284k) relate to trade taxes (EUR 24k; previous year EUR 4k), corporate taxes (EUR 1k; previous year: EUR 70k), and withholding taxes (EUR 210k; previous year: EUR 210k).

6.4 Current financial debt

Current financial debt is comprised of bank borrowings amounting to EUR 915k (previous year:

EUR 800k), liabilities to companies in which participating interests are held and to companies recognised at cost, as well as other liabilities amounting to a total of EUR 4,126k (previous year: EUR 4,588k). Of the EUR 4,126k (previous year: EUR 4,588k), EUR 0k (previous year: EUR 2,191k) are loans.

Of the total amount of EUR 5,041k (previous year: EUR 5,388k), current loans amounted to EUR 915k (previous year: EUR 800k).

Bank borrowings include interest liabilities of EUR 0k (previous year: EUR 5k).

Liabilities to companies in which participating interests are held are short-term in nature and primarily relate to liabilities to investments accounted for using the equity method.

in EURk 31/03/2013 31/03/2012

Trade accounts payable 487 752

Liabilities from the invoice of building projects 241 0

Liabilities from value added taxes 105 273

Personnel-related liabilities 44 86

Liabilities to administrators 0 22

Liabilities from accruals and deferred income 0 10

Others 219 370

1,096 1,513

Current financial debt contains EUR 1,843k (previous year: EUR 1,799k) relating to dividend liabilities on the part of MAGNAT Asset Management GmbH to former shareholders. In addition, this item also includes financials debt to the former co-investor R-QUADRAT Capital Beta GmbH totalling EUR 1,912k (previous year: EUR 0k). This financial debt is collateralised by assets. These assets comprise invest-ments in affiliated companies and receivables from affiliated companies. If overdue, the collateral can be liquidated. The debt matures upon expiry of February 14, 2014.

Regarding the loans for MAGNAT Immobilien GmbH & Co. Schumanngasse 16 KG and MAGNAT Asset Management GmbH & Co. Kastnergasse 16 KG, we refer to the discussions on the events subsequent to the balance sheet date.

The nominal interest rate nearly corresponds to the effective interest rate since only minimal transac-tion costs were incurred.

Interest liabilities for non-current and current loans n/a n/a 0 5

DKB loan for 1. MAGNAT Immobilienges. mbH 4,57 01/04/2013 to 31/03/2014 112 107

DKB loan for 5. MAGNAT Immobilienges. mbH 4,57 01/04/2012 to 31/03/2013 0 117

Loan for MAGNAT Immobilien GmbH & Co. Brünner Straße 261-263 KG 4,75 30/09/2012 0 567

Loan for MAGNAT Asset Management GmbH & Co. Kastnergasse 16 KG n/a n/a 637 0

Loan for MAGNAT Immobilien GmbH & Co. Schumanngasse 16 KG n/a n/a 164 0

Loan for R-QUADRAT Immobilien Management GmbH & Co. Grazer Straße 59-61 KG

4,90 30/06/2012 and

31/12/2012

0 4

Current account overdraft 1. MAGNAT Immobilienges. mbH n/a n/a 2 0

915 800

Loan R-Quadrat Capital Gamma GmbH for MAGNAT RE AG 11.00 25/06/2012 0 173

Loan AURAGUS GmbH for MAGNAT Real Estate AG 3M-Euribor + 4.50 30/09/2012 0 2,018

0 2,191

Group management report Consolidated financial statements Notes to the consolidated

financial statements Notes to the consolidated

balance sheet Responsibility statement Audit opinion Financial calendar

114 DEMIRE Deutsche Mittelstand Real Estate AG Annual Report 2012 / 2013

7. LEASES

7.1 Operating leases – The Group as lessee

As at the balance sheet date, lease agreements for vehicles resulted in future minimum lease payments of EUR 45k (up to one year) and EUR 23k for the period of one to five years. In addition, there were leases for office premises from which future minimum lease payments will result in the amount of EUR 170k (up to one year) and EUR 681k (between one and five years). In the reporting period, the following amounts were recorded as lease expenses:

7.2 Operating leases – The Group as lessor

Through the purchase of real estate the Group has acquired certain real estate leasing contracts for commercial rentals which are up for sale. The real estate held includes office space which is not being occupied by the Group.

As at the balance sheet date, the following leases existed:

As at the balance sheet date, the rental agreement of the "Arbeitsamt Parchim" property was termina-ted as per July 30, 2013.

Concerning the "Arbeitsamt Worms" a perpetual rental agreement exists with a notice period of six months to the month‘s end.

The rental agreement regarding the "Halle-Peißen" property (mobile phone antennas) expires on November 30, 2014.

As explained under item C, rental agreements concluded by the Group in connection with residential properties do not constitute a rental agreement in accordance with IAS 17.

The following receivables exist for future minimum lease payments based on non-cancellable operating leases:

in EURk 01/04/2012 –

31/03/2013

01/04/2011 – 31/03/2012

Vehicles 48 41

Office premises 206 184

In the reporting period, the following amounts were recognised as lease income: